(Alliance News) - Moody's Investors Service late Monday changed Petra Diamonds Ltd's probability of default rating to Ca-PD/LD, but kept its Caa3 corporate family rating and negative outlook for the diamond producer.
The credit agency has appended Petra's Ca-PD rating with the LD indicator following the expiration of the grace period on the USD23.6 million coupon payment which was due on May 1 in relation to the USD650 million notes.
On Friday last week, Petra entered a forebearance agreement with the holders of USD650 million in 2022 notes.
The agreement expires on August 31 and is automatically extended on a monthly basis, but this will not apply to forbearing holders which withdraw from the agreement.
One key condition is that Petra must propose the terms of its capital restructuring plan to stakeholders by no later than June 30.
Meanwhile, Petra's negative outlook reflected the depressed diamond market, weak liquidity and uncertainties surrounding the final recoveries for note holders.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Petra Diamonds (PDL)